The following table shows output per hour produced by the different units of labor. Table 14.1 Number of Workers 10 1 S Output per Hour b 12 15 oligopolistic. perfectly competitive. 17 18 Price of the Product $3 monopsonistic monopolistic. monopolistically competitive $3 $3 $3 $3 The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue $3 The structure of the product market as described by Table 14.1 is

The following table shows output per hour produced by the different units of labor. Table 14.1 Number of Workers 10 1 S Output per Hour b 12 15 oligopolistic. perfectly competitive. 17 18 Price of the Product $3 monopsonistic monopolistic. monopolistically competitive $3 $3 $3 $3 The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue $3 The structure of the product market as described by Table 14.1 is

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 1P

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A textile firm in a competitive industry employs a particularly efficient manager torun the operations at its production facility. In the textile industry, a plant managertypically makes a salary of $4,500 per month. The textile firm employing thesuperior manager faces the LAC and LMC curves shown in the figure below. Inlong-run competitive equilibrium, the price of the product is $9. a- . If the superior plant manager also owned the textile firm, she would earn$___________ of economic profit. Explain your answer
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A textile firm in a competitive industry employs a particularly efficient manager torun the operations at its production facility. In the textile industry, a plant managertypically makes a salary of $4,500 per month. The textile firm employing thesuperior manager faces the LAC and LMC curves shown in the figure below. Inlong-run competitive equilibrium, the price of the product is $9. D-If the superior plant manager also owned the textile firm, she would earn$___________ of economic profit. Explain your answer.
10 20 30 40 50 More than 50
Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage rate required at each level of employment. What is the monopsonists marginal cost of labor at each level of employment? If each unit of labors marginal revenue product is 13, what is the firms profit maximizing level of employment and wage?
A textile firm in a competitive industry employs a particularly efficient manager torun the operations at its production facility. In the textile industry, a plant managertypically makes a salary of $4,500 per month. The textile firm employing thesuperior manager faces the LAC and LMC curves shown in the figure below. Inlong-run competitive equilibrium, the price of the product is $9 A- typical textile firm in this competitive industry has a minimum long-runaverage cost of $______. The typical textile firm earns economic profit of$______ B-The textile firm with the superior plant manager could earn economic profitof $___________ per month, if no rent is paid to the superior manager C-The superior plant manager is likely to earn a salary of $______ per month,$____________ of which is economic rent
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